SACRAMENTO — “Catching 15 unlicensed people in a matter of a few hours should be a clear warning to residents about the importance of making sure the person they’re asking into their home is a legitimate contractor,” said Contractors State License Board Registrar Steve Sands.

“Homeowners need to watch out for these criminals,” said Sands. “Unlicensed, illegal contracting puts homeowners at risk and legitimate contractors at a competitive disadvantage.”

Investigators posed as homeowners and invited nearly two dozen people who advertised as contractors to give bids for painting, tree services, landscaping, masonry, and concrete work. All 15 individuals arrested face misdemeanor charges for both contracting without a license (Business and Professions Code section 7028), which carries a penalty of up to six months in jail and/or a fine of up to $5,000 if convicted, and illegal advertising (Business and Professions Code section 7027.1). State law requires contractors to place their license number in all print, broadcast, and online advertisements. Those without a license can advertise to perform jobs valued at less than $500, but the ad must state that they are not a licensed contractor. The penalty is a fine of $700 to $1,000.

Nine of those who bid on projects asked for an excessive down payment (Business and Professions Code section 7027.1). In California, a home improvement project down payment cannot exceed 10 percent of the contract total or $1,000, whichever is less. This misdemeanor charge carries a maximum penalty of six months in jail and/or up to a $5,000 fine.

Thirteen of the phony contractors also were issued Stop Orders (Business and Professions Code section 7127). CSLB investigators can halt job site activity when any person with or without a contractor license does not have workers’ compensation insurance coverage for employees. Failure to comply with a Stop Order can result in misdemeanor charges and penalties, including 60 days in jail and/or up to $10,000 in fines.

Contracting without a license, Illegal advertising, No workers' compensation - Stop Order

CSLB encourages consumers to always “Check The License First” by visiting www.cslb.ca.gov or calling CSLB’s toll-free automated line 800.321.CSLB (2757). Also, visit CSLB’s website for tips about how to hire a contractor and to sign up for CSLB email alerts.

The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. More information and publications about hiring contractors are available on CSLB’s website or by calling (800) 321-CSLB (2752). You also can sign up for CSLB email alerts. CSLB licenses and regulates about 300,000 contractors in California, and is regarded as one of the leading consumer protection agencies in the United States. In fiscal year 2012-13, CSLB helped recover nearly $44 million in ordered restitution for consumers.

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